Summary
SS&C Technologies opened fiscal 2025 with GAAP revenue of $1,513.9 million, up 5.5% from the prior-year quarter. Adjusted revenue, a non-GAAP measure, was $1,514.8 million, also up 5.5%. The company said adjusted organic revenue growth was 5.1% and financial services recurring revenue growth was 5.9%. Revenue growth was led by fund administration, wealth and investment technologies, global investor and distribution solutions, and virtual data room services. GAAP operating income was $357.9 million, up 7.5%, and operating margin was 23.6%, up 0.4 percentage points from a year earlier. Gross profit was $747.1 million, up 5.6%, while gross margin was 49.3%, flat from the prior-year quarter. GAAP net income attributable to SS&C was $213.0 million, up 35.2%, and diluted EPS was $0.84, up 35.5%. Adjusted diluted EPS was $1.44, up 8.3%.
Non-GAAP profitability remained well above GAAP results. Adjusted operating income attributable to SS&C was $575.3 million, up 6.5%, with a 38.0% margin. Adjusted consolidated EBITDA attributable to SS&C was $591.9 million, up 6.3%, with a 39.1% margin. Management called the adjusted revenue and adjusted EBITDA figures first quarter records. The wide gap between those adjusted figures and GAAP operating income reflects large non-cash and other adjustments, including intangible amortization and stock-based compensation. That split matters because the company's guidance and leverage metrics lean on adjusted earnings. Net income rose much faster than operating income, helped by lower interest and tax expenses, a point worth watching as adjusted earnings remain the main valuation reference.
Cash generation improved. Operating cash flow was $272.2 million, up 50.8% from the prior-year quarter. Capital expenditures were $12.7 million, up 119.0%. Deferred revenue, current portion, was $498.9 million, up 1.2%. Remaining performance obligations were $989.7 million. The quarter also included capital returns and debt reduction. SS&C bought back 2.4 million shares for $206.9 million at an average price of $87.21 and paid down $155.0 million of debt. Net leverage stood at 2.74 times consolidated EBITDA attributable to SS&C, and net secured leverage was 1.57 times. Those moves show management is using cash flow for both shareholder returns and balance sheet repair.
Management provided guidance for the next quarter and the full fiscal year. For Q2 2025, it guides adjusted revenue of $1,489.0 million to $1,529.0 million and adjusted diluted EPS of $1.35 to $1.41. For full year 2025, it guides adjusted revenue of $6,118.0 million to $6,238.0 million, adjusted net income attributable to SS&C of $1,441.0 million to $1,541.0 million, and adjusted diluted EPS of $5.68 to $6.00. The company does not provide reconciliations of the adjusted revenue and adjusted net income guidance to comparable GAAP measures, citing unreasonable efforts.
Risks remain familiar and material. Management points to ongoing macroeconomic conditions, including increases in interest rates and inflation, volatility in capital markets, and changes in foreign currency exchange rates. Those factors are uncertain and largely outside the company's control. The 10-Q also flags risks tied to substantial indebtedness and debt covenants, cyber-attacks, IT system failures, client consolidation, and the company's focus on the asset management industry. Revenue is concentrated in financial services and healthcare software and services, so demand from those clients and any shift in their spending can affect results. Currency translation was a headwind in the quarter, even as organic growth and adjusted margins expanded.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.51B | $1.53B | -1.0% | $1.44B | +5.5% |
| Gross profit | $747.1M | $753.9M | -0.9% | $707.2M | +5.6% |
| Gross margin | 49.4% | 49.3% | +0.1 pp | 49.3% | +0.1 pp |
| Research & development | $129.1M | $136.8M | -5.6% | $120.9M | +6.8% |
| Sales & marketing | $152.3M | $156.6M | -2.7% | $140.9M | +8.1% |
| General & administrative | $107.8M | $102.6M | +5.1% | $112.5M | -4.2% |
| Total operating expenses | $389.2M | $396.0M | -1.7% | $374.3M | +4.0% |
| Operating income (loss) | $357.9M | $357.9M | ±0.0% | $332.9M | +7.5% |
| Operating margin | 23.6% | 23.4% | +0.2 pp | 23.2% | +0.4 pp |
| Net income (loss) | $213.2M | $248.4M | -14.2% | $158.0M | +34.9% |
| Net margin | 14.1% | 16.2% | -2.2 pp | 11.0% | +3.1 pp |
| Diluted EPS | $0.84 | $0.98 | -$0.14 | $0.62 | +$0.22 |
Risks
SS&C carries substantial secured and unsecured indebtedness, including $3,350.0 million of Term B-8 Loans, $790.0 million of Term A-9 Loans, $2,000.0 million of 5.5% Senior Notes and $750.0 million of 6.5% Senior Notes outstanding at March 31, 2025, and net interest expense was $105.2 million for the quarter. The credit facility requires maintenance of a maximum consolidated net secured leverage ratio of 6.25x for the Revolving Credit Facility and a 5.25x ratio for the Term A-9 Loans, and any breach could accelerate amounts due with a material adverse effect on results of operations, financial position and cash flows.
MD&A states that ongoing macroeconomic conditions such as increases in interest rates and inflation, volatility in capital markets, and changes in foreign currency exchange rates could have impacts on results that are uncertain and outside the company's control, and that these situations remain dynamic and subject to rapid and possibly material change.
Net interest expense of $105.2 million for the quarter reflects an average interest rate of 6.09%, down from 6.86% in the prior-year quarter, with the decrease driven by lower average interest rates. A reversal of that rate trend would increase debt service costs on the floating-rate Term B-8 and Term A-9 Loans.
Client funds obligations totaled $4,560.4 million at March 31, 2025, covering transfer agency client balances, claims administration funds and pharmacy claim obligations. Financing activities provided net cash of $935.3 million for the quarter, primarily a net increase in client fund obligations of $1,200.4 million, so a disruption in client fund flows or timing could materially affect reported liquidity and cash flows.
The effective tax rate was 18.4% for the quarter versus 29.7% in the prior-year quarter, driven by increased recognition of windfall tax benefits from stock awards and a change in the composition of income before income taxes among foreign and domestic jurisdictions. Management states that a future change in the composition of income before income taxes from foreign and domestic tax jurisdictions could impact the periodic effective tax rate, and OECD Pillar Two rules in non-U.S. jurisdictions introduce additional uncertainty.
Results include recent acquisitions (Battea acquired September 2024 and FPS Trust Company acquired February 2025), which contributed $13.0 million of revenues in the quarter and $3.8 million of operating expenses. Acquisition accounting, integration of acquired operations and the related purchase accounting adjustments remain areas of significant management judgment, and the company also notes it may continue to acquire complementary businesses or assets.
Software-enabled services revenues increased 6.9% to $1,269.9 million for the quarter and represented 83.9% of total revenues, while license, maintenance and related revenues decreased 1.3% to $244.0 million. This concentration means results increasingly depend on assets under management in client portfolios and outsourced transaction volumes, which the company notes drive fluctuations in software-enabled services revenues.
Foreign currency translation unfavorably impacted total revenues by $6.9 million in the quarter, software-enabled services revenues by $5.1 million and license, maintenance and related revenues by $1.8 million, while favorably reducing costs by $4.5 million. Other income (expense), net included foreign currency translation losses of $2.2 million for the quarter.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Adjusted Consolidated EBITDA Margin
Adjusted Organic Revenue Growth
Financial Services Recurring Revenue Growth
Cash Flow Conversion
Summary, forecast, risks and KPIs are extracted from SS&C Technologies Holdings Inc's SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.